1 October 2009 ? The ever evolving lending world is changing yet again. As of January 1st, 2010 the Federal Housing Administration will be shifting responsibility of FHA insured loans off of the mortgage broker and solely on to the lender funding the loan. This was/is designed to spur on home sales and we all know that home sales are critical to the economy.

Does this shift mean that the floodgates of loans will open and more homes will change hands in 2010? I am not so sure. We have to remember there are many obstacles to obtaining a loan these days. First and foremost, the funding sources will have new requirements that will need to be met in order for them to insure the loans. Not only that, many experienced appraiser’s are leaving the industry due to the changes brought on by HVCC but by the extra paperwork involved with being an FHA appraiser. FHA insured loans and lenders have hired an army of “reviewers” who’s job it is to nitpick every appraisal report for typos and computer errors. Enforcement can be arbitrary and variate with each reviewer. The penalty, of course, is not only dismissal from the roster, but the loss of the appraiser’s state license. The liability has become too high and Appraisal Management Companies are eating up any potential profit. Again, I truly believe we cannot have the experienced appraiser’s leaving the industry. The bottom line of the loan does rest on the appraiser’s opinion of value.